South Korea’s AI data center boom is colliding with the true cost of power



Analysis South Korea’s AI data center boom is colliding with the true cost of power Samsung and SK Hynix rejected KEPCO’s grid bill, leaving Seoul to decide whether AI developers pay their share John LeeSeptember 21, 2026 SHARE COPY LINK FACEBOOK X LINKEDIN MASTODON A Google data center stands beside an electrical substation in The Dalles, Oregon, Sept. 11, 2011 \| Image: Visitor7 via Wikimedia Commons (CC BY-SA 3.0) Samsung Electronics and SK Hynix refused to prepay $18 billion (25 trillion won) toward South Korea’s national power grid, exposing how regional exemptions could shift the connection costs behind Seoul’s AI data center push onto Korea Electric Power Corp. (KEPCO) and other electricity users. KEPCO proposed that Samsung and SK Hynix pay $14.4 billion (20 trillion won) and $3.6 billion (5 trillion won) — roughly five years of electricity payments — respectively to help finance the grid serving the Yongin and Honam industrial clusters. Both companies’ rejection of KEPCO’s proposal means that unless KEPCO manages to renegotiate with the two © Korea Risk Group. All rights reserved. No part of this content may be reproduced, distributed, or used for commercial purposes without prior written permission from Korea Risk Group. LATEST ANALYSIS 01Why South Korea cannot rebalance growth without stronger regional clusters 02Samsung, SK Hynix rejection exposes South Korea’s chip-grid financing problem 03Trump’s Cheongung social media post tests Seoul’s refusal to arm to Ukraine 04Lee Jae Myung risks public trust as South Korea rewires its justice system 05South Korea turns to Central Asia as Iran war tests its energy resilience 06Houthi seizure of Mokha sharpens South Korea’s Hormuz deployment dilemma 07Japan’s stronger yen may cut Korea’s import bill while raising funding costs 08South Korea leans on Europe as Hormuz deployment choices grow narrower

Analysis

South Korea’s AI data center boom is colliding with the true cost of power

Samsung and SK Hynix rejected KEPCO’s grid bill, leaving Seoul to decide whether AI developers pay their share

John LeeSeptember 21, 2026

South Korea’s AI data center boom is colliding with the true cost of power

A Google data center stands beside an electrical substation in The Dalles, Oregon, Sept. 11, 2011 | Image: Visitor7 via Wikimedia Commons (CC BY-SA 3.0)

Samsung Electronics and SK Hynix refused to prepay $18 billion (25 trillion won) toward South Korea’s national power grid, exposing how regional exemptions could shift the connection costs behind Seoul’s AI data center push onto Korea Electric Power Corp. (KEPCO) and other electricity users.

KEPCO proposed that Samsung and SK Hynix pay $14.4 billion (20 trillion won) and $3.6 billion (5 trillion won) — roughly five years of electricity payments — respectively to help finance the grid serving the Yongin and Honam industrial clusters.

Both companies’ rejection of KEPCO’s proposal means that unless KEPCO manages to renegotiate with the two

South Korea’s AI data center boom is colliding with the true cost of power

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John Lee